Key facts
- China's government has directed steelmakers to avoid discussing Fortescue's new iron ore product.
- The directive is a potential geopolitical or economic maneuver.
- Negotiations for a long-term supply contract between China and Fortescue are facing difficulties.
China's government has issued a directive to its steelmakers, instructing them not to engage in discussions with Australian iron ore producer Fortescue regarding a new low-grade product. This move comes amid difficulties in securing a long-term supply contract and suggests a potential geopolitical or economic strategy by China. The directive implies that China may be using its market power or diplomatic channels to influence negotiations or exert pressure on Fortescue.